##### 



FOR IMMEDIATE RELEASE  April 19, 2006
 VALLEY BANCORP Q1 06 EARNINGS UP 50%
 HIGHLIGHTS
 
    
    First quarter earnings of $1,634,000, up 50% from $1,092,000 in 1st quarter 2005.
    
    First quarter earnings per diluted share of $0.55 up 49% from 1st quarter 2005.
    
    ROE and ROA of 15.17% and 1.63% respectively in 1st quarter 2006.
    
    Total loans increased $103 million, up 46% from 1st quarter 2005.
 Las Vegas, Nevada VLLY




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##### 



(Unaudited)
 At March 31,
    
    
    Change2006
    
    
    2005
    
    
    $ or #
    
    
    %Balance Sheet:Loans net of Unearned Fees
    
    $
    328,986
    
    
    $
    225,256
    
    
    $
    103,730
    
    
    
    46.05
    %Allowance for Loan Losses
    
    
    (3,289
    )
    
    
    (2,248
    )
    
    
    (1,041
    )
    
    
    46.31
    %Loans, net
    
    
    325,697
    
    
    
    223,008
    
    
    
    102,689
    
    
    
    46.05
    %Total Assets
    
    
    407,688
    
    
    
    311,104
    
    
    
    96,584
    
    
    
    31.05
    %Total Earning Assets
    
    
    389,112
    
    
    
    297,644
    
    
    
    91,468
    
    
    
    30.73
    %Total Investments
    
    
    63,415
    
    
    
    74,585
    
    
    
    (11,170
    )
    
    
    -14.98
    %Total Deposits
    
    
    346,017
    
    
    
    271,726
    
    
    
    74,291
    
    
    
    27.34
    %Total Borrowed Funds
    
    
    15,415
    
    
    
    457
    
    
    
    14,958
    
    
    
    3273.09
    %Total Liabilities
    
    
    364,179
    
    
    
    274,026
    
    
    
    90,153
    
    
    
    32.90
    %Total Stockholders Equity
    
    
    43,509
    
    
    
    37,078
    
    
    
    6,431
    
    
    
    17.34
    %Common Shares Outstanding
    
    
    2,827,881
    
    
    
    2,794,748
    
    
    
    33,133
    
    
    
    1.19
    %Book Value per Share
    
    $
    15.39
    
    
    $
    13.27
    
    
    $
    2.12
    
    
    
    15.97
    %Allowance for Loan Losses to Total Loans
    
    
    1.00
    %
    
    
    1.00
    %
    
    
    
    
    
    
    0.00
    %Total Stockholders Equity to Total Assets
    
    
    10.67
    %
    
    
    11.92
    %
    
    
    
    
    
    
    -1.25
    %Total Loans to Total Deposits & Borrowed Funds
    
    
    90.11
    %
    
    
    81.93
    %
    
    
    
    
    
    
    8.18
    %
 Three Months Ended March 31,
    
    
    Change2006
    
    
    2005
    
    
    $ or #
    
    
    %Income Statement:Interest Income
    
    $
    7,413
    
    
    $
    4,462
    
    
    $
    2,951
    
    
    
    66.14
    %Interest Expense
    
    
    2,440
    
    
    
    1,089
    
    
    
    1,351
    
    
    
    124.06
    %Net Interest Income
    
    
    4,973
    
    
    
    3,373
    
    
    
    1,600
    
    
    
    47.44
    %Provision for Loan Losses
    
    
    227
    
    
    
    51
    
    
    
    176
    
    
    
    345.10
    %Non-interest Income
    
    
    61
    
    
    
    75
    
    
    
    (14
    )
    
    
    -18.67
    %Non-interest Expense
    
    
    2,331
    
    
    
    1,741
    
    
    
    590
    
    
    
    33.89
    %Income before Income Taxes
    
    
    2,476
    
    
    
    1,656
    
    
    
    820
    
    
    
    49.52
    %Income Tax Expense
    
    
    842
    
    
    
    564
    
    
    
    278
    
    
    
    49.29
    %Net Income
    
    $
    1,634
    
    
    $
    1,092
    
    
    $
    542
    
    
    
    49.63
    %Basic Earnings Per Share
    
    $
    0.58
    
    
    $
    0.39
    
    
    $
    0.19
    
    
    
    48.72
    %Diluted Earnings Per Share
    
    $
    0.55
    
    
    $
    0.37
    
    
    $
    0.18
    
    
    
    48.65
    %Weighted Average Shares  Basic
    
    
    2,827,832
    
    
    
    2,790,792
    
    
    
    37,040
    
    
    
    1.33
    %Weighted Average Shares  Diluted
    
    
    2,966,593
    
    
    
    2,953,762
    
    
    
    12,831
    
    
    
    0.43
    %Average Total Assets
    
    $
    401,163
    
    
    $
    288,656
    
    
    $
    112,507
    
    
    
    38.98
    %




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##### 



Three Months Ended March 31,
    
    
    Change2006
    
    
    2005
    
    
    $ or #
    
    
    %Average Earning Assets
    
    
    384,542
    
    
    
    275,455
    
    
    
    109,087
    
    
    
    39.60
    %Average Stockholders Equity
    
    
    43,099
    
    
    
    36,840
    
    
    
    6,259
    
    
    
    16.99
    %Net Interest Margin (1)
    
    
    5.24
    %
    
    
    4.97
    %
    
    
    
    
    
    
    0.27
    %Return on Assets (1)
    
    
    1.63
    %
    
    
    1.51
    %
    
    
    
    
    
    
    0.12
    %Return on Equity (1)
    
    
    15.17
    %
    
    
    11.86
    %
    
    
    
    
    
    
    3.31
    %Non-interest Expense to Average Earning Assets (1)
    
    
    2.42
    %
    
    
    2.53
    %
    
    
    
    
    
    
    -0.11
    %Efficiency Ratio
    
    
    46.30
    %
    
    
    50.49
    %
    
    
    
    
    
    
    -4.19
    %Full Time Equivalent Employees
    
    
    72
    
    
    
    53
    
    
    
    19
    
    
    
    35.85
    %
 
 (1)
    
    Annualized Net Interest Income and Net Interest Margin
  (Unaudited)
 Three Months Ended March 31,2006
    
    
    2005Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Income/
    
    
    Yield/
    
    
    Average
    
    
    Income/
    
    
    Yield/Balance (1)
    
    
    Expense
    
    
    Cost (2)
    
    
    Balance (1)
    
    
    Expense
    
    
    Cost (2)Assets
    
    (Dollars in thousands)Earning assets:Loans (3) (4) (5)
    
    $
    307,957
    
    
    $
    6,614
    
    
    
    8.71
    %
    
    $
    208,302
    
    
    $
    3,931
    
    
    
    7.65
    %Federal funds sold (6)
    
    
    32,182
    
    
    
    358
    
    
    
    4.51
    %
    
    
    19,627
    
    
    
    121
    
    
    
    2.50
    %Interest bearing deposits (6)
    
    
    8,916
    
    
    
    98
    
    
    
    4.46
    %
    
    
    9,104
    
    
    
    56
    
    
    
    2.49
    %Investment securities (6)
    
    
    35,487
    
    
    
    343
    
    
    
    3.92
    %
    
    
    38,422
    
    
    
    354
    
    
    
    3.74
    %Total earning assets and interest income
    
    
    384,542
    
    
    
    7,413
    
    
    
    7.82
    %
    
    
    275,455
    
    
    
    4,462
    
    
    
    6.57
    %Non-interest earning assets:Cash and due from banks
    
    
    9,991
    
    
    
    
    
    
    
    
    
    
    
    7,622Premises and equipment
    
    
    7,342
    
    
    
    
    
    
    
    
    
    
    
    5,799Other assets
    
    
    2,350
    
    
    
    
    
    
    
    
    
    
    
    2,024Allowance for credit losses
    
    
    (3,062
    )
    
    
    
    
    
    
    
    
    
    
    (2,244
    )Total assets
    
    $
    401,163
    
    
    
    
    
    
    
    
    
    
    $
    288,656Liabilities and Stockholders EquityInterest bearing liabilities:Interest bearing demand deposits
    
    $
    96,004
    
    
    $
    405
    
    
    
    1.71
    %
    
    $
    73,194
    
    
    $
    213
    
    
    
    1.18
    %Savings deposits
    
    
    17,162
    
    
    
    81
    
    
    
    1.91
    %
    
    
    12,620
    
    
    
    18
    
    
    
    0.58
    %




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##### 



Three Months Ended March 31,2006
    
    
    2005Interest
    
    
    Average
    
    
    
    
    
    
    Interest
    
    
    AverageAverage
    
    
    Income/
    
    
    Yield/
    
    
    Average
    
    
    Income/
    
    
    Yield/Balance (1)
    
    
    Expense
    
    
    Cost (2)
    
    
    Balance (1)
    
    
    Expense
    
    
    Cost (2)(Dollars in thousands)Time deposits $100,000 or more
    
    
    85,792
    
    
    
    869
    
    
    
    4.11
    %
    
    
    50,393
    
    
    
    324
    
    
    
    2.61
    %Other time deposits
    
    
    90,554
    
    
    
    925
    
    
    
    4.14
    %
    
    
    71,628
    
    
    
    526
    
    
    
    2.98
    %Long-term borrowings
    
    
    15,422
    
    
    
    160
    
    
    
    4.21
    %
    
    
    463
    
    
    
    8
    
    
    
    7.01
    %Total interest bearing liabilities
    
    
    304,934
    
    
    
    2,440
    
    
    
    3.25
    %
    
    
    208,298
    
    
    
    1,089
    
    
    
    2.12
    %Noninterest-bearing liabilities:Demand deposits
    
    
    51,117
    
    
    
    
    
    
    
    
    
    
    
    42,495Other liabilities
    
    
    2,013
    
    
    
    
    
    
    
    
    
    
    
    1,023Stockholders equity
    
    
    43,099
    
    
    
    
    
    
    
    
    
    
    
    36,840Total liabilities and stockholders equity
    
    $
    401,163
    
    
    
    
    
    
    
    
    
    
    $
    288,656Net Interest Spread (7)
    
    
    
    
    
    
    
    
    
    
    4.57
    %
    
    
    
    
    
    
    
    
    
    
    4.45
    %Net interest income/margin (8)
    
    
    
    
    
    $
    4,973
    
    
    
    5.24
    %
    
    
    
    
    
    $
    3,373
    
    
    
    4.97
    %
 
 (1)
    
    Average balances are obtained from the best available daily data.(2)
    
    Annualized.(3)
    
    Loans are gross of allowance for credit losses but after unearned fees.(4)
    
    Non-accruing loans are included in the average balances.(5)
    
    Fee income is included in interest income.(6)
    
    All investments are taxable.(7)
    
    Represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities(8)
    
    Net interest margin represents net interest income as a percentage of average interest-earning assets. Provision for Loan Losses and Related Allowance for Loan Losses
  Non-interest Income and Non-interest Expense
  th rd th st




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##### 



Balance Sheet
  About Valley Bancorp
  Website:
    
    Valley Bancorps website
    
     www.valleybancorp.comValley Banks website
    
     www.vbnv.com